Medical Properties Trust Recaps $1.9B German Hospital Portfolio
Medical Properties Trust owns the 71 post-acute hospitals and has formed a JV with Primonial Group for it to acquire half.
BIRMINGHAM, ALA–Medical Properties Trust is recapitalizing a portfolio of post-acute hospitals in Germany in a deal that values the properties at $1.9 billion.
The company is entering into a joint venture agreement with the European company Primonial Group in which a fund managed by Primonial Group will acquire a 50% interest in this 71-asset portfolio, with Medical Properties Trust retaining the 50% stake.
Medical Properties Trust CEO Edward K. Aldag, Jr., in a prepared statement said that investor interest in the portfolio was strong and came from funds based in Asia, Europe, Canada and the US. The REIT is benefiting from the arrangement with access to less expensive forms of equity and debt capital and an independent validation of MPT’s asset values, he also said,
Based on the agreed 6% valuation of the portfolio’s 2017 rents, Medical Properties Trust expects to report a gain of approximately $590 million upon closing. At closing, Primonial Group will acquire its interest in the joint venture for cash, and a bank syndicate is expected to provide secured financing. Total expected proceeds to MPT, including its portion of the secured debt, will be approximately $1.34 billion. MPT expects to use such proceeds to fully repay its balances under its revolving credit facility, continue to make hospital acquisitions in the US and Europe and for general corporate purposes.